Global Manufacturing Inc

Global Manufacturing Inc. uses normal costing during the year to allocate manufacturing overhead to jobs in a job costing system. At year end, it uses the adjusted allocation rate approach to account for underallocated or overallocated overhead. During 2018, Global's manufacturing overhead was underallocated by 10%. Job 117 had the following costs:
Direct materials $1,600
Direct labor $3,400
Manufacturing overhead allocated $2,000
Which of the following would be the after adjustment cost of Job 117?

A) $7,340
B) $7,200
C) $7,700
D) $6,300